6:53 am PST. Ok, maybe this morning’s drop is a buy, so long as it does not overlap 792.40.

6:44 am PST. I was looking at HYG again. Here is my potential count. At this rate, it does look like the market – as in the Dow, SPX, QQQ – could continue to climb into May. It looks like we are in wave v/(iii)/(5)/3.

6:00 am PST. I have to chuckle. CNBC is totally on board now saying Amazon is a buy this morning. Jim Cramer too. Personally, I think it is almost time to start shorting AMZN. They missed most of the boat ride already. I think maybe AMZN can go to $850, but then I think it is going to see a sharp correction after that. Not sure that a lot of folks can hold through that volatility.

They certainly are not writing about gold or silver. lol. Which means this bull market has a long ways to go on the upside. The news people only ever see the trend after the bulk of the middle part has been done and over with.

Which is why this morning’s headline on CBNC.com makes me laugh. Posted about 32 minutes ago: “Why the dollar’s bull run could be ‘alive and kicking’.” Dollar bulls, look out below. I do like Elon Musk, though, hard-working man, love his products.

5:33 am PST. “In January, the US economy added 227,000 jobs while the unemployment rate rose slightly to 4.8%,” according to Yahoo Finance. “Average hourly earnings were up 0.1% over the prior month and 2.5% over last year. This was better worse than expected.” (sic). Yahoo Finance cannot write a grammatically correct sentence. “better worse than expected”? What does that mean? lol.

Gold and silver are moving up after the report. The dollar is selling off. The dollar could waterfall from here. I expected silver to move higher anyway, regardless of the news.

Perfect how silver just tagged the trendline and bounced.

4:52 am PST. Silver is testing this black trendline this morning at 16.40. The 8 ema is at 16.38 and there is a confluence of support around 16.30. I expect SLV to close above this trendline today and continue higher next week. Silver is in a new trading range now.

ABX has double bullish descending wedge breakouts. Gold is not going below $1000. It bottomed December 3, 2015. That is it. Ofcourse, gold will not go up in a straight line and there will be back and fill, but the bottom is in.

It looks like silver already broke out in multiple time frames. Plus it has a wave overlap with wave 1. Bullish.

It looks like a possible bull flag to me on the monthly chart. The upper trendline on the weekly that gold would have to rally above for breakout is about $1300.

1:02 pm PST. GDX closed strong, holding the morning’s gap open. I think GDX will go to the 200 sma which is just above us.

HYG, the corporate bond etf, which has a very similar pattern to SPX, made another marginal new high today on increasing negative divergence. I have posted two charts of HYG with an SPX overlap in black.

The UUP had a smaller 110,000 share block trade at 25.80 and we closed below. We also closed below the 4 EMA again, which means the trend is still down for now in the dollar.

7:59 am PST.

Here is a nice chart of EXK. Yesterday it closed above the 200 sma day. I would say the 200 sma is support. That is also the upper trendline breakout point.

If you have read Stan Weinstein’s trading book, a sideways consolidation breakout is typically a very bullish pattern.